Capital Gains Tax in India — Short Term vs Long Term for All Assets
By Parul Singh, GST Practitioner · Capital Gains
Table of Contents
From selling NSE stocks to selling a Dwarka flat, capital gains tax applies differently. I computed gains for 1,000+ clients.
Capital gains tax applies when you sell a capital asset at a profit. The tax treatment depends on the type of asset and the holding period.
Short Term vs Long Term
| Asset | STCG Period | LTCG Period | STCG Rate | LTCG Rate |
|---|---|---|---|---|
| Equity shares / ELSS | <12 months | >12 months | 20% | 12.5% (above ₹1.25L) |
| Debt mutual funds | <36 months | >36 months | Slab rate | Slab rate |
| Real estate | <24 months | >24 months | Slab rate | 20% + indexation |
| Gold / Silver | <36 months | >36 months | Slab rate | 20% + indexation |
Exemptions
- Section 54: LTCG on property → reinvest in residential property
- Section 54F: LTCG on any asset → reinvest in residential property
- Section 54EC: Invest up to ₹50L in NHAI/REC bonds within 6 months
- Equity LTCG exemption up to ₹1.25 lakh per year
Post Budget 2024, equity LTCG is taxed at 12.5% above ₹1.25 lakh exemption, and STCG at 20%.